There are three “filters” for the recommendations we make here.
The first is the stock must cost under $5 per share. This narrows our universe, but not by much. There are around 15,000 stocks that cost under $5 per share.
Then, we calculate the Piotroski Score for each. This will indicate underlying financial strength. Once we’ve done that, we hone in on the ones scoring a 7 or higher. This will narrow our universe considerably more, which will now be around 10 to 20 stocks at any one time.
The final filter is market headwinds. This is something Shah will determine – money can be shifting toward a certain sector, a company could have earnings in the next week, or politics and macroeconomic trends could mean money is shifting away from certain investment areas.
Once he’s made that determination, you will hear from him right away.